1 Company overview and Material Accounting Policies
Company overview

1.1 Sical Logistics Limited (‘Sical’) founded in 1955 is a leading integrated multimodal logistics solutions provider. The
Company is into every aspect of logistics namely port handling, road and rail transport, warehousing, shipping, stevedoring,
customs handling, trucking, retail logistics, mining and integrated logistics.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Chennai,
Tamilnadu. The Company has its equity shares listed on the BSE Limited and National Stock Exchange of India Limited.

The financial statements are approved for issue by the company’s Board on 28 May 2025.

1.2 The Hon’ble National Company Law Tribunal (“NCLT”), Chennai Bench, admitted the Corporate Insolvency Resolution
Process (“CIRP”) application filed by an operational creditor of SICAL LOGISTICS LIMITED (“the Company”) and appointed
Mr. Lakshmisubramanian (IBBI Registration no. IBBI/IPA-003/IP-N00232/2019-2020/12697) as Interim Resolution
Professional (“IRP”), in terms of the Insolvency and Bankruptcy Code, 2016 (“the Code”) to manage the affairs of the
Company vide CP No. IBA/73/2020 dated 10th March 2021. Pursuant to this, based on the application made by the
Committee of Creditors of the Company, the Hon’ble NCLT has ordered appointment of Mr. Sripatham Venkatasubramanian
Ramkumar (IBBI Registration No. IBBI/IPA-001/IP-P00015/2016-17/10039) as Resolution Professional (“RP”) of the
Company in disposing of IA no. IA/54/CHE/2021 in IBA/73/2020 on 2nd June 2021.

The resolution plan as submitted by Pristine Malwa Logistics Park Private Limited was approved by CoC was filed before
Honourable NCLT Chennai Bench for their approval. Tthe Hon’ble National Company Law Tribunal Chennai as required
under section 30 & 31 of the Insolvency and Bankruptcy Code, 2016, approved the Resolution Plan vide the Order IA
(IBC)/ 366 (CHE)/2022 in IBA/73/2020 along with IA(IBC)/102(CHE)/2022 in IBA/73/2020 dated 08 December 2022. As
per the said Order, the Resolution Plan is binding on the corporate debtor and its employees, members, creditors,
including the Central Government, any State Government or any local authority to whom a debt in respect of the payment
of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed, guarantors
and other stakeholders involved in the Resolution Plan.

11th January, 2023 was declared as the effective date for the implementation of the Resolution Plan by the Monitoring
Committee upon fulfilment of certain conditions precedent by the successful Resolution Applicant (Pristine Malwa Logistics
Park Private Limited) inlcuding infusing of initial funding.

1.3 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical
cost convention on the accrual basis, the provisions of the Companies Act, 2013 (‘Act’) (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS prescribed under Section 133 of the
Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.4 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset
is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle;

• it is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

1.5 Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and in any future periods affected. In particular, information about
significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements is included in the following notes:

(i) Income taxes: Significant judgments are involved in determining the provision for income taxes, including the amount
expected to be paid or recovered in connection with uncertain tax positions.

(ii) Property, plant and equipment: Property, plant and equipment represent a significant proportion of the asset base of
the company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s
expected useful life and the expected residual value at the end of its life. The useful lives and residual values of
Company’s assets are determined by management at the time the asset is acquired and reviewed periodically,
including at each financial year end. The lives are based on historical experience with similar assets as well as
anticipation of future events, which may impact their life, such as changes in technology.

(iii) Other estimates: The preparation of financial statements involves estimates and assumptions that affect the reported
amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported
amount of revenues and expenses for the reporting period. Specifically, the Company estimates the probability of
collection of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit¬
worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances
may be required.

1.6 Revenue recognition

Revenue is recognized on accrual method on rendering of services when the significant terms of the arrangement are
enforceable, services have been delivered and the collectability is reasonably assured.

Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with Customers”. The effect on
adoption of Ind AS 115 was insignificant. Revenues in excess of invoicing are classified as contract assets (which we
refer as unbilled revenue) while invoicing in excess of revenues are classified as contract liabilities (which we refer to as
unearned revenues).

To determine whether to recognise revenue from contracts with customers, the Company follows a 5-step process:

1 Identifying the contract with customer

2 Identifying the performance obligations

3 Determining the transaction price

4 Allocating the transaction price to the performance obligations

5 Recognising revenue when/as performance obligation(s) are satisfied.

A performance obligation is satisfied over time if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity
performs;

(b) the entity’s performance creates or enhances an asset (for example, work in progress) that the customer controls as
the asset is created or enhanced ; or

(c) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable
right to payment for performance completed to date.

Revenues from sale of services comprise income from container handling, storage and transportation services provided
to customers. Revenue from handling, storage and transport services arc recognised on completion of services i.e.
when services are performed or delivered, as per the contracts entered with the customers provided the consideration is
reliably determinable and no significant uncertainty exists regarding collection of consideration.

Revenue from terminal access service is recognized on completion of access services provided to rail operators for
loading/unloading of the containersRevenue from rental income from lease of plant and equipment is recognised on
accrual basis as per the contracted terms. The amount recognised as revenue is exclusive of tax and net of rerums.

(a) Contract assets

A Contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the
establishment performs by transferring goods or services to a customer before the customer pays consideration or
before payment is due, a contract asset is recognised from the earned consideration that is conditional. The contract
assets are transferred to receivable when the rights become unconditional. Payment terms are contractually agreed
with the customers.

(b) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Establishment has
received consideration from the customer. If a customer pays consideration before the establishment transfers
goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due
(whichever is earlier). Contract liabilities arc recognised as revenue when the Establishment performs under the
contract.

1.7 Property, plant and equipment

Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and
impairment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.

Depreciation: The Company depreciates property, plant and equipment over the estimated useful life on a straight-line
from the date the assets are ready for intended use. Assets acquired under finance lease and leasehold improvements
are amortized over the lower of estimated useful life and lease term. The estimated useful lives of assets for the current
and comparative period of significant items of property, plant and equipment are as follows:

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and
equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the
Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the
statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the
financial statements upon sale or disposition of the asset and the resultant gains or losses are recognized in the statement
of profit and loss.

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the
cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work- in¬
progress.

1.8 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in
which the entity operates (i.e. the “functional currency”). The financial statements are presented in Indian Rupee, the
national currency of India, which is the functional currency of the Company.

1.9 Foreign currency transactions and balances

Transactions in foreign currency are translated into the functional currency using the exchange rates prevailing at the
dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated
in foreign currencies are recognized in the statement of profit and loss and reported within foreign exchange gains/
(losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at
the exchange rate prevalent on the date of transaction.

1.10 Financial instruments

All financial instruments are recognised initially at fair value. Transaction costs that are attributable to the acquisition of
the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value
of the financial assets. Loans and borrowings and payable are recognised net of directly attributable transactions costs.

(i) Financial assets at amortised cost:

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding (SPPI).

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are
presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and
subsequently carried at amortized cost using the effective interest method, less any impairment loss.

Financial assets at amortised cost are represented by trade receivables, security deposits, cash and cash equivalents,
employee and other advances and eligible current and non-current assets.

(ii) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI) :

Includes assets that are held within a business model where the objective is both collecting contractual cash flows
and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. At initial recognition, the Company,
based on its assessment, makes an irrevocable election to present in other comprehensive income the changes in
the fair value of an investment in an equity instrument that is not held for trading. These elections are made on an
instrument-by instrument (i.e.., share-by-share) basis. If the Company decides to classify an equity instrument at
FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or losses and foreign
exchange gains and losses, are recognized in other comprehensive income. There is no recycling of the amounts
from OCI to profit or loss, even on sale of investment. The dividends from such instruments are recognized in
statement of profit and loss.

The fair value of financial assets in this category are determined by reference to active market transactions or using
a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months
and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition. The loss allowance shall be recognized in other comprehensive income and
shall not reduce the carrying amount of the financial asset in the balance sheet.

(iii) Financial assets at Fair Value Through Profit or Loss (FVTPL) : Financial assets at FVTPL include financial assets
that are designated at FVTPL upon initial recognition and financial assets that are not measured at amortized cost
or at fair value through other comprehensive income. All derivative financial instruments fall into this category,
except for those designated and effective as hedging instruments, for which the hedge accounting requirements
apply. Assets in this category are measured at fair value with gains or losses recognized in statement of profit and
loss. The fair value of financial assets in this category are determined by reference to active market transactions or
using a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months
and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition. The loss allowance shall be recognized in the statement of profit and loss.

(iv) Cash and cash equivalents comprise cash on hand and in banks and demand deposits with banks which can be
withdrawn at any time without prior notice or penalty on the principal.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and
demand deposits with banks, net of outstanding book overdrafts that are repayable on demand, and are considered
part of the Company’s cash management system.

(v) Financial liabilities at amortised cost: Financial liabilities at amortised cost represented by trade and other payables
are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

1.11 Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company enters into certain derivative contracts such as interest rate swaps and currency swaps to hedge risks
which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss. Such derivative
financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and
are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and
as financial liabilities when the fair value is negative.

1.12 Impairment

(i) Financial assets: In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss. The Company follows ‘simplified approach’ for recognition of
impairment loss allowance on trade receivable.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly,
lifetime ECL is used. If in subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss
allowance based on 12 month ECL.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are
possible within 12 months after the reporting date.

As a practical expedient, the Group uses a provision matrix to determine impairment loss on portfolio of its trade
receivable. The provision matrix is based on its historically observed default rates over the expected life of the trade
receivable and is adjusted for forward- looking estimates. At every reporting date, the historical observed default
rates are updated and changes in forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the
statement of profit and loss. This amount is reflected under the head other expenses in the statement of profit and
loss. The balance sheet presentation for various financial instruments is described below:

Financial assets measured at amortised cost, contractual revenue receivable: ECL is presented as an allowance,
i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write off criteria, the group does not reduce impairment allowance from the
gross carrying amount.

b) Non-financial assets: The Company assesses at each reporting date whether there is any objective evidence that a
non financial asset or a group of non financial assets is impaired. If any such indication exists, the Company estimates
the amount of impairment loss.

An impairment loss is calculated as the difference between an asset’s carrying amount and the recoverable. Losses
are recognised in the statement of profit and loss and reflected in an allowance account. When the Company
considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the
amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring
after the impairment was recognised, then the previously recognised impairment loss is reversed through statement
of profit and loss.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and
its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest
group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of
other assets or groups of assets (the “cash-generating unit”).

1.13 Loss allowance for receivables and unbilled revenues

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current
and estimated future economic conditions. The company considered current and anticipated future economic conditions
relating to industries the company deals with. In calculating expected credit loss,the company has also considered credit
reports and other related credit information for its customers to estimate the probability of default in future and has taken
into account estimates of possible effect from the pandemic relating to COVID -19.

1.14 Employee Benefit

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined
contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a
fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee
benefits. The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans
is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the
Company’s obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the
Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.

The Company has the following employee benefit plans:

(a) Gratuity: In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to
eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment
with the Company. The gratuity fund is managed by the Life Insurance Corporation of India (LIC). The Company’s

obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation
using the projected unit credit method.

Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include
an expected return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the
discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual
return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined
liability or asset through other comprehensive income.

Remeasurements comprising of actuarial gains or losses and return on plan assets (excluding amounts included in
net interest on the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

(b) Compensated absences: The employees of the Company are entitled to compensated absences. The employees
can carry forward a portion of the unutilised accumulating compensated absences and utilise it in future periods or
receive cash at retirement or termination of employment. The Company records an obligation for compensated
absences in the period in which the employee renders the services that increases this entitlement. The Company
measures the expected cost of compensated absences as the additional amount that the Company expects to pay
as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes
accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are
recognized in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately
in the statement of profit and loss.